The CFTC announced it has issued no-action relief to registered FCMs and IBs to exclude deferred tax liabilities that are directly related to the capitalized costs of certain non-allowable assets when computing their adjusted net capital under Regulation 1.17.
The deferred tax liabilities reflect differences between book accounting and tax accounting that result from changes to generally accepted accounting principles that require the capitalization of certain costs that are immediately expensed for income tax purposes.